select category from menu


US-China trade

Tensions raised as tit-for-tat trade dispute escalates. 

Read more
Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

Read more
Alternative finance

Report on the growth of alternative finance.

Read more

Fiscal policy

Question 1

Assuming the economy is in an initial equilibrium at X, identify where the new equilibrium will be if:

Fiscal policy
  1. There is a rise in public sector borrowing

  2. There is a rise in government government subsidies to the motor industry

  3. The government spends less on defence

  4. The basic rate of income tax is raised

  5. The VAT rate is cut from 20%  to 15%.

Question 2

  1. Analyse the likely impact on the UK economy of an increase in government spending on higher education.

  2. What are the main disadvantages of an increase in income tax, assuming the economy has an output gap?

  3. What are the main disadvantages of an increase in government spending not matched by an increase in taxation?

Question 3

  1. Distinguish between automatic and discretionary fiscal policy.

  2. How will the recent financial crisis affect the UK's national debt?

  3. Why is fiscal policy more dominant than monetary policy during the current economic recession?

  4. Give three advantages and three disadvantages of using government spending to regulate aggregate demand in the UK economy.

  5. Evaluate 'crowding out' theory in the light of current government policy towards the financial crisis.

Read more
Sainsbury's-Asda merger

Sainsbury's and Asda confirm merger plans.

Read more
Customs unions

Costs and benefits of customs unions.

Read more
New materials

Multiple choice papers for Paper Three.

Read more
Brexit update

Article 50

What trading options are available to the UK?

Savings ratio

Savings ratio falls to lowest level on record.

Read more
Tax avoidance

Double Irish - and a Dutch Sandwich more..

The OECD presents its final package for reform of international tax rules..more

Bank of England - cuts interest rates to 0.25%..more.

Get the Economics Online app